Australian Unity Ltd · ASX:AYUPA
Australian Unity — FY2021 Earnings Presentation
34 slides from Australian Unity's earnings presentation, Sep 7, 2021
Slide 1: Investor update
Australian Unity Limited Investor update Financial results for the year ended 30 June 2021
Slide 2: Invitation to investor presentation teleconference
Australian Unity Limited is pleased Date Wednesday 8 September 2021 to invite you to our investor presentation teleconference for the Time 9:30am to 10:30am AEST year ended 30 June 2021 To access the teleconference participants must register in advance via the link below: https://apac.directeventreg
Slide 3: Important information
Important information This notice relates to all information provided as a part of To the maximum extent permitted by law, AUL, its related this presentation including, without limitation, these slides, bodies corporate and each of its respective officers, associated presentations and any oral prese
Slide 4: Overview and Group highlights, Business results, Summary and outlook
1. Overview and Group highlights 2. Business results 3. Summary and outlook Rohan Mead Darren Mann Beverly Smith Group Managing Director Group Executive Finance & Strategy Executive General Manager and CEO and Chief Financial Officer Residential Communities, Independent & Assisted Living AUL FY21 In
Slide 5: Overview and Group highlights
Overview and Group highlights AUL FY21 Investor presentation 5
Slide 6: Overview of Australian Unity
Overview of Australian Unity Mutual with a commitment to members, customers and community • Established in 1840, a member-owned company with 400,000 members and more than 700,000 customers • Diversified but thematically-linked portfolio of health, wealth and care businesses that provides member, cus
Slide 7: People & safety
People & safety We know that supporting the real wellbeing of our people means they can better support our members and customers. The COVID-19 pandemic contributed to Safety proactive management of new and emerging risks, particularly in the areas • Strong incident reporting culture with a significa
Slide 8: FY2021 Strategic priorities
FY2021 Strategic priorities Sustain momentum for Deliver health & Implement Herston Quarter human PHI strategy STARS1 services Mobilise Generate cash portfolio Manage for earnings capability & financial seize safety opportunities 1Surgical, Treatment and Rehabilitation Service (STARS) public hospita
Slide 9: FY2021 Operational review
FY2021 Operational review Advancing strategic ambitions • Further progressed strategy of building a commercially sustainable portfolio of businesses that provides member, customer and community value and fosters personal and community wellbeing • Delivered a sound financial result despite COVID-19 a
Slide 10: Measuring Community & Social Value
Measuring Community & Social Value Priority outcomes Impact report Lifelong wellness • Australian Unity will publish its inaugural 1. Better access to healthcare impact report in October 2021 2. Improved health outcomes • The report will detail our Environmental, Social & Governance (ESG) risks and
Slide 11: FY2021 financial summary
FY2021 financial summary Key financial statistics FY2021 FY20201 Change Revenue and other income ($m) 1,706.1 1,400.9 305.2 Total expenses, excluding financing 1,586.6 1,378.4 208.2 costs ($m) Profit after tax ($m) 32.9 9.1 23.8 Operating earnings ($m) 52.1 30.3 21.8 Total MCI dividend in relation t
Slide 12: FY2021 key metrics
FY2021 key metrics Profit after income tax1 2 ($m) 60.0 50.0 40.0 30.0 48.8 50.3 45.1 20.0 32.9 10.0 9.1 0.0 FY2017 FY2018 FY2019 FY2020 FY2021 1 Included in the FY2018 result was a profit from discontinued operations of $66.9m from the divestment of the Group’s corporate health insurance subsidiary
Slide 13: FY2021 segment earnings growth
FY2021 segment earnings growth 1 Adjusted EBITDA ($m) FY2020 FY2021 90.0 81.8 80.0 71.1 70.0 61.2 60.0 57.4 50.0 40.0 32.8 30.0 27.3 20.0 10.0 0.0 2 Independent & Assisted Living Retail Wealth & Capital Markets 1 Adjusted EBITDA: the measure the Group uses in assessing the operating performance of i
Slide 14: Building balance sheet flexibility and resilience
Building balance sheet flexibility and resilience 250 30 June 2020 maturity profile1 ($m) Continued to build flexibility into the balance 200 sheet, positioning for strategic opportunities Orange indicates to be realised. Key activities during FY2021 issuances and included: 150 25 facilities 20 18 r
Slide 15: Gearing analysis and interest cover
Gearing analysis and interest cover Covenant gearing ratio1 Interest cover ratio1,2 60% 600 10.0 9.0 50% 500 8.0 Debt Capacity ($m) 40% 400 7.0 6.0 Gearing Ratio 30% 300 5.0 4.0 20% 200 3.0 2.0 10% 100 1.0 0% 0 0.0 Debt Capacity to covenant limit ($m) (RHS) Interest cover ratio Bonds Gearing Ratio (
Slide 16: Evolution of funding over a decade
Evolution of funding over a decade Bank Debt The group’s funding sources have continued to evolve since the issue of Australian Unity Limited’s first listed debt in FY2011. • support from the banking group remains strong • increase to corporate liquidity facilities Cost of external debt and equity 8
Slide 17: Independent & Assisted Living
Independent & Assisted Living AUL FY21 Investor presentation 17
Slide 18: Independent & Assisted Living (IAL)
Independent & Assisted Living (IAL) • Improved operating model driving customer-centred continuum of 1 care across the home care, residential care and Remedy Healthcare Adjusted EBITDA ($m) businesses FY2020 FY2021 71.1 • Total segment revenue increase of 7.4% to $520.6m compared to 57.4 prior corre
Slide 19: IAL highlights
IAL highlights Home Care Services Residential Remedy Development (HCS) Communities Healthcare Dental pipeline • EBITDA increase of • Owned and operated 21 • Increased revenue by • Six dental clinics • Continued to progress $10.7m1 to $29.4m from retirement communities 44.2% to $41.0m, driven operati
Slide 20: IAL outlook
IAL outlook • Continue to orientate the business around the needs of customers and key stakeholders in their health and wellbeing—families, primary carers, communities and government agencies • Continue HCS strong results through growth in HCPs, increased service hours per customer, safety managemen
Slide 21: IAL focus on scale
IAL focus on scale Focus on scale in co-located retirement and aged care precincts: 30% ILU increase, 130% RAC bed increase delivered or underway since FY2019 • Australian Unity is delivering diversified expansion Portfolio growth since 2018/19 through: 2,990 ‒ Greenfield/Precinct Development: The G
Slide 22: 'Small household' model
‘Small household’ model We are one of Australia’s leading ‘small household’ aged care providers with ten years’ experience in the design, build and operation of this model • The Aged Care Royal Commission (Feb 2021) recommended the ‘small household’ model as the best and most appropriate residential
Slide 23: Delivering C&SV in Residential Communities
Delivering C&SV in Residential Communities Lifelong wellness • Enabling the population to age well by investing in the design, development and operations of co-located retirement and small • Better access to healthcare household aged care communities for over a decade • Improved health outcomes • 82
Slide 24: Retail
Retail AUL FY21 Investor presentation 24
Slide 25: Retail
Retail • Delivered a strong financial result despite the significant challenges and disruption presented by the COVID-19 pandemic Adjusted EBITDA ($m) FY2020 FY2021 • Adjusted EBITDA of $81.8 million—33.6% higher than the PCP 81.8 • While revenue marginally decreased, saw growth in the number of pri
Slide 26: Retail highlights
Retail highlights Australian Unity Health Limited Private health insurance (PHI) Australian Unity Bank Limited • Growth in PHI policyholders, up • Deferred Claims Liability* • ~26,000 customers, with total assets growing by 1.7% to 174,827 (DCL) increased from $37.6m $16.9m to $1.15b (30 June 2020:
Slide 27: Retail outlook
Retail outlook • Outlook remains cautiously positive, notwithstanding known impacts and ongoing uncertainties flowing from COVID-19 on healthcare and the economy • Anticipate that most health insurance claims deferred due to restrictions on healthcare services during the pandemic will catch up • Sec
Slide 28: Wealth & Capital Markets
Wealth & Capital Markets AUL FY21 Investor presentation 28
Slide 29: Wealth & Capital Markets (W&CM)
Wealth & Capital Markets (W&CM) • 29.7% increase in total segment revenue to $221.1m, reflecting the ongoing impact of the pandemic in suppressing growth across most Adjusted EBITDA ($m) business lines, offset by a positive performance in the Property FY2020 FY2021 business, and higher revenues from
Slide 30: W&CM highlights
W&CM highlights Investments Property Life & Super Advice Trustees • FUMA of $10.46b • Assets under management • Funds under management • 171 advisers (2020: 176) • Established pipeline of (2020: $8.22b), with increased to $4.10b (2020: and administration of $2.51b • FUA growth to $9.36b estates, tru
Slide 31: W&CM outlook
W&CM outlook • Period ahead should continue to provide opportunities to offer customers valuable investment opportunities and to deliver increased community and social value • Expansion of funding to the childcare property sector is an example of the value that Australian Unity can bring to supporti
Slide 32: 10 year growth strategy
10 year growth strategy Financial Members Employees Combination of organic Focus on building Growth driven on level of and inorganic growth, relationship with members portfolio growth in Human targeting $100m NPAT to drive product uptake, as Services businesses well as attracting new members Reach I
Slide 33: FY2022 priorities
FY2022 priorities Realise the value of the modern mutual Create the building blocks to form deeper Build social infrastructure reach relationships with members, based on Continuing to realise and extend our improving wellbeing outcomes and superior presence within the Social interaction with the Gro
Slide 34: Austiglian >]
Austiglian >] Real Wellbeing 180 YEARS